Jordan earns an annual salary of $47,400. If a lender uses 33% of monthly gross income...

Jordan earns an annual salary of $47,400. If a lender uses 33% of monthly gross income as a guideline for the maximum PITI (principal, interest, taxes, and insurance), what is the maximum amount that Jordan can pay for PITI each month?

Expert Solution

Maximum mortgage amount per month for PITI = Annual salary x Rate /12 months

Maximum mortgage amount per month for PITI = 47400 x 33% /12

Maximum mortgage amount per month for PITI = $1,303.50

jeff jeffy answered 2 years ago

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